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Cardano company Input Output says ADA is not a security

Input Output Global (IOG), the company behind Cardano, responded to recent regulatory action regarding the legal status of its ADA token. june 6,

Input Output Responds to SEC Cases

IOG’s statement comes in the wake of recent actions by the US Securities and Exchange Commission (SEC) against Binance and Coinbase. The SEC alleges that ADA and other cryptocurrencies traded on those exchanges are investment contracts and securities.

In response, the IOG asserted that the filing contained “numerous factual inaccuracies”. It states that the ADA is not and never has been a protection under US law.

The IOG also criticized the SEC’s tendency to regulate by enforcement and its lack of clarity. The company said it is open to working with regulators to create a pro-innovation framework, adding that it advocates for sensible regulation that “respects the nature of blockchain.”

Input Output Global additionally said that the ongoing cases against Coinbase and Binance will not impact its operations at all.

Hawkinson commented earlier

Cardano founder Charles Hoskinson previously commented on the development. On June 5, he called the Binance case “the next in a series of steps to implement Chokepoint 2.0.”

The ADA token has lost significant value following the news. While the overall crypto market is down 2.6% in 24 hours, ADA is down 8.9% in 24 hours.

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